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tv   Power Lunch  CNBC  March 5, 2013 1:00pm-2:00pm EST

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a little bit earlier in the show, we asked you to weigh in on the debate, the bull or bear. we've tallied the results and you said steve weiss, natural bear. make a better argument. >> so old. >> final trades. joe. you're up first. >> adding to michael kors. >> like the setup 11 times earnings. >> steve weiss. >> spy 147 put. i hope i lose money on them. it's protection under the market. >> all right, doc. >> southwest energy. my favorite take profits and roll up and out. that's what they did here. buying. >> that does it for us. don't forget to catch fast money at 5:00 p.m. follow me on twitter at scott wapner cnbc.
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historic day. all-time record high. "power lunch" has the story. this is a special edition of "power lunch" as the dow hits a new all-time high. >> and breaking news right here on cnbc. if you're just tuning in, the dow has, indeed, hit an all-time high mark. i'm sue herera, the nyse, center of the financial universe. you can feel the buzz. take a look at the screen. the new high watermark for the dow jones industrial was set right after the opening bell. then we moved steadily to the upside. right now as you can see, let me just clear this a little bit, right now the dow jones industrial is trading at 14,000268.75. it crossed that old mark set in the fall, as i mentioned, right after the open. we have full coverage all hour long. i'm going to turn it back to ty
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who is at our global hq. hi, ty. >> sue, thank you very much. it's going to be a busy hour for all of you here and those at home. we'll bring in mad money's jim cramer on this historic day. i'm happy the market is at an all-time high but i'm also scared. my experience tells me every time i've thought, here we go, it's safe now, all clear, it's turned out not so we will for me over the past decade and a half. >> hu not said that, i think you would have heard from me not what you said. i want to celebrate not the average. that's been exactly what we know has been wrong to do, all 10,000 cap, 11,000. celebrate people who got this far, stayed with us. i think part of the reason we're so strong here, ty, so many pros have been fighting it. so many pros say you can't touch sequestration. you can't touch it, bernanke will take the punch bowl away.
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the average joe doesn't know what punch bowl is except something on saturday. >> every time i hear it. what should i do, i'm in for the long haul. is it time to put more money in? how do i play this? >> i'm listening to judge wapner, kors, 66 and much, much lower. i hear other people give me names that make so much sense. i've got three if you don't mind i'd like to give you. >> let's go. >> there are three that have done nothing in this chasm. black rock, probably best equity manager in the world, larry f g fink, this stock is almost unchanged. great yield, raised the dividend over and over again. here is another one, nordstrom's, we admit the rich are still shopping. it's up three points from the open. >> from the high.
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>> makes no sense. wealthy people are buying. we know that's a better run company. they have opened a lot of this nordstrom's off the rack. >> sure. >> the last one, i like to come in with a surprise because people want a surprise. radian. no, sir that didn't know it thought it was road kila deer they spray paint, isn't that a horrible image on the side of the road. this is $10 stock mortgage insurer. it's way back because housing is back. i can't suggest whirlpool, sherman williams, those fit what you say, come in here. down and could have a big sell with countrywide. did financing $8 ten days ago. >> what i'm hearing you say is look for the stocks that haven't moved, find out why, and they are probably still selling at nice prices. >> we've got six out of the ten, our great statistician, six out
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of ten s&p sectors are not back. you start with the sector, work backwards. look at this. >> six of the ten. >> it's not like we're sitting here. you're not high-fiving everybody. not one of those volley balls, spike it, all going to the center. a lot of guys left out of the center. this is down 7%. you telling me that's the same key as when it was about to dive off a cliff. let me give you one, i shudder the thought is bank of america as bad as bank of america is indicating with the stock? >> i don't think so. >> you know what, ty. >> a lot of countrywide -- >> the last radian deal. you're right. be joyful, be excited. >> skeptical. >> to get your head chopped off. i don't want a marie antoinette moment between you and me. >> let's go down to sue who i know wants to jump in here. >> listen, nobody wants a marie antoinette moment in this market. i totally agree with you.
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what i find impressive, confirmation from the transportation index this morning, which i think is very important, and the breadth. if you look at the broader-based market indexes. i take your point completely on the s&p. i think it's pretty impressive we have not only the s&p, russell, 2000, wilshire is participating as well a lot of those bigger indexes are doing quite well today. >> that is important. let's compare where we were last time. sue, when we were last time, it was fertilizer, copper, materials. materials still not back to where they were. we were so narrow last time it was almost like we were courting disaster. now it's so broad, it's almost difficult to find something that isn't. i've still got some ideas. sue, i think all of us are seasoned enough to know today is not necessarily the great day to plunge it. wow, all-time high, let me go put my money to work. don't do that. i will disavow knowledge of you like mission impossible.
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>> this is your kind of day, baby. >> i have to tell you, i don't want to celebrate but i do want to celebrate the people who made all these money and didn't listen to jeremiah, you've got to get out because bernanke was scaring me. they were all rich people anyway that said that. >> jim cramer, we'll be watching you tonight. >> thank you. >> good to see you. >> well said, jim. well said. >> we want to remind you dow at an all-time high. where do we go from here? a special market edition tonight at 7:00 p.m. eastern time. a market special on the dow on this red letter day. sue. >> well, ty, on this historic market day, we have a man who has led some of this country's biggest and most iconic companies. bob mar deli joins us. his past titles include ceo of home depot, ceo of chrysler. he was a top player at the private equity giant cerberus. he joins us on the set of the nyse. so good of to you join us. >> thank you for the invitation. you can feel the excitement on the floor. it's electric. >> what do you make of the
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market at this juncture. jim had a good point of you don't wan to jump in if you haven't been in at the highs. but do you feel given your post of the economy a move to all time highs is sustainable in the dow jones industrial? >> what i've seen out there, sue, certainly from my experience in the auto industry, $17 million to 9, 14, projecting 15. that's a very good sign. good for job creation. second, house, "which is the second largest sector that really drives the economy. we're seeing a return in housing. we're seeing housing prices go up. mortgage issue going down. we're seeing all the commodity suppliers like home depot record leve levels. those are very encouraging. you mentioned transportation. starting to see a recovery there. those are all positive signs. like jim said, i don't know that i would jump in heavily today because you do have -- you have the sequester is still an issue. you have the continuing
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resolution at the end of the month, funding the government, then you've got the debt ceiling. you've got some real strong gos in and some gos out. >> one of the things that spooked the market the other day was china's growth figures and whether or not we're really seeing a slowdown in china. you cover the global economy with all the companies you're helping out right now. what are you hearing about what's really going on in china and how concerned should u.s. investors be? >> well, i just happen to be with a very influential person in the china market last night over dinner. and he was not as concerned with the announcement as maybe the general public. they announce 7.5. obviously they have always beat their number. they have a new congress coming in. so again, for them, even 8%, 8.5 would not be as robust. but it's a heck of a lot stronger than what we're seeing. again, as the president talks
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about sequester maybe taken .6 of a point off, my concern is i wonder if we're accepting a new phenomenon here about running slower and jumping lower in our gdp growth. i hope we dig deep and really drive innovation and really get this gdp fumble going along with where the market is so it's predictable and sustainable, sue. >> do you anticipate an enormous amount of volatility with things coming together with sequestration or do you think the market factored some of that in. >> look, the market is very smart. the investors are very smart in general. i'm hoping, i'm assuming they have. we have two more big issues to resolve in this country relative to financing the future for our families, for our children and our children's children. i hope they have factored it in. i hope it doesn't create a blip in the market. >> stay right there. we're going to talk more about the art of deals and much more
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in just a few minutes. mr. nardelli will be with us after the break. on the agenda he mentioned housing and the housing market. we'll talk about that, the state of private equity. who is ripe to be bought out. also ahead, a sector left out in the cold in this historic run-up. kayla tausche on the case for us. >> the banks rocked the crisis, having a hard time bouncing back. show you where the sector is going from here regardless of which way the market goes. sue. >> >> the first five top performers the last time the dow was at a record high, which was 2007. take a look at that. home depid hepodepot, 108%. back in a minute. if you think running a restaurant is hard, try running four. fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable,
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right before the break we showed you some of the best performers since the record high in 2007. well, on the flip side some of the dow's worst performers since that high watermark include cisco, general electric, hewlett-packard, bank of america and alcoa. ty. >> sue, not a dow component but also on our radar on this record breaking tuesday, southeastern asset management owns 8% of that pc maker turning up the heat demanding the company open the books. a growing number of investors unhappy with michael dell's plan to take the company private for $24 billion, $13.65 a share.
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meanwhile u.s. regulators have granted pfizer an extension on its multi-billion dollar pain drug celebrex into early december 2015, prevents generic drugmakers from cashing in. pfizer is there, as you see, at a 52-week high. as the dow breaks past its record high back in october '07, one sector is still nowhere it used to be. that would be the banks. with more analysts getting bullish on the sector, could financials lead the next leg of the rally. should there be a next leg or are the glory days gone? kayla tausche will explain. >> hi, tyler, financials are taking part in today's rally. they are up 1% as the dow surgeons to record highs and takes the s&p along wit. just the latest of the recent rally where banks were some of the best performers. even given recent gains analysts think there's more room to run this year alone.
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consensus price target seesty group rising the most up 14%. all the universal banks as well. goldman sachs loan ranger analysts forecasting to be in the red as far as where they are trading now. those percentage games destroyed wallet on set of the crisis. in all s&p financials down 50% since the last high. of course, the crisis in the synthetic instruments created by wall street force add few banks to close up shop. not to mention take the government as a shareholder. citigroup and aig lost so much market cap they got bumped out of the dow. bank of america is in but posting worst performances of 30 stocks. financials still holding roughly the same weight in the index. before the banks that made it to the other side, tyler, they are down but not out. balance sheets once near the brink, some are saying they are stronger than ever right now. >> we were talks as an aside about amex, a financial, but not a bank. since the market low in march, it is, i believe, the number one
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performer in the dow but it didn't get bailed out. >> didn't get bailed out. nothing as a subprime amex. >> that's exactly right. you've got a platinum card you're doing all right. >> you are. >> down to you, sue. >> thanks, guys. bob nardelli back with us with the dow sitting at an all-time high. what does that tell us about the outlook for housing and private equities? great to have you back with us, bob. >> thank you, sue. >> you mentioned housing before. you used to run home depot. >> yes. >> what does your gut tell you about this housing recovery right now? >> i'm encouraged when lou at all the builders. their prospects have been very positive. i think the pent up demand for housing is there. i think valuation has gone up, which is another good sign. we're starting to see occupancy going the right direction. so i'm really encouraged by what's happening in housing. it's such a strong indicator for the overall economy and job creation. >> there are some people who are using the word housing bubble
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again, primarily because we've had that pent up demand. we've also had a lot of foreclosures out there. what do you make of that argument? >> i think it's way premature to call this modest recovery. if you think about how far we have fallen, and the fact we're now increasing is great. we're not back to the record levels we saw in, what, 2006. >> right. >> 2005 and '6. now looking at over a million starts. i'm encouraged at the recovery. we're not near the bubble level yet. >> the other issue that gets a lot of talk down here is the fact deals are being done again. mergers and acquisitions. your new company accelerate advise as lot of companies on doing deals and also restructuring. >> yes. >> tell us about that. what are you seeing in the corporate landscape right now in terms of deal making and also in terms of the restructurings you've been involved in.
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>> i'm certainly not doing the deals like ty talked about with michael dell. i'm seeing in the mid market, midcap area, i'm seeing a lot of family-owned businesses, privately held businesses wanting to monetize, wanting to get some money off the table as they see the recovery, maybe reinvest in the market because they don't want to be left out. i'm really encouraged with deal flow. i'm really encouraged if you look at the big private equity companies, they certainly have done extremely well in this recovery. i think that will continue. >> energy is also on your radar screen. your comments to me kind of echo those of jamie dimon, jpmorgan chase, energy could be the biggest job creator out there. >> absolutely. bar none. when i think about energy, i think about, you know, the lombardi saying, if not now, when? if not us, who? i think the implications for a strong energy policy, we've talked about it, we need to do
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it, sue. job creation. nothing more gratifying than being able to have a job and your self-esteem that creates revenue as opposed to taxation, sustainable predictable revenue. if we're the low cost energy provider, manufacturing jobs come back to the u.s., which means you don't have the issue of repatriation of profits, right? your defense spending should go down because you're not going to have to protect supply chains -- i think energy, several people have said this, is really the fuel, the oxygen in what's going to really help an economic recovery in this country right now. >> well, we'll see if they execute on that. thank you, bob nardelli for spending time on "power lunch." great to see you. come back soon. >> i will. >> ty, up to you. >> sue, thank you. the dow hitting at record high. oil has been dropping. are oil stocks a smart play now? we'll talk to the ceo of sun core next.
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welcome back to "power lunch." i'm kayla tausche with breaking news on citigroup. if you take a look at citigroup, shares are taking a sharp leg higher, more than 2%. this is coming as citigroup's ceo is wrapping up presentation at citi's financial services conference giving clear outlines of targets for financial metrics the city will follow, also saying, quote, not afraid to restructure businesses if they fall short of targets. he said targets are necessary for the company to be held accountable for how its doing and said you are what you measure. as far as those businesses that could be restructured, he identified 21 markets where the company, if they can't optimize those businesses, he said they are not afraid to scale back or exit entirely. that is exactly what investors want to hear. they wanted strong words. they wanted his affirmation he would be willing to take strong moves toward creating value at
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citi. you can see investors are voting with their dollars. tyler. >> thank you very much. they really mean business. let's move on now to oil prices. they are for a bit of a change moving higher trying to break a five-day losing streak as investors on strong chinese oil demand. oil down more than 6%, crossing that $90 a barrel mark for the first time in 2013. did that just yesterday. back above it, as you see, right now. oil producer sun core energy hurt by crude's decline. but if you got in 10 years ago, you'd have a 240% return on your investment. that's pretty nice. over five years, however, down 44% over one year, down 13%. the biggest executives in energy are gathering at the 32nd annual ihs conference down in houston. cnbc's sharon epperson is there with sun core's ceo. sharon. >> tyler, suncor having a good
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day, up about 1% on the session. it is canada's largest energy company and the biggest oil sands producer in the world. the ceo steve williams joins me now. thank you for being here. there's been so much talk at this conference about the u.s. oil boom. also considering the fact for the united states the imports that we're seeing from canada are the largest we have from any country. the import about 2.5 million barrels a day from canada, that's twice as much as from saudi arabia. but we are still seeing a very big boom in our own production in the united states. i'm wondering how is that impacting suncor's plans. >> yes, i mean, you know, as you say, canada is the biggest importer of crude for the u.s. the tight oil boom has had an impact. i'll maybe briefly talk to that. what it mainly affects is the supply of what we call light sweet crude. actually what we think will be
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short in the u.s. is the heavier crude. a very good complimentary match. very encouraged by the boom and i think it bodes well for canada. >> one of the things we talked about at this conference several years ago was the scarcity of oil. now with the boom in the u.s. and all the oil, 350,000 barrels per day that comes from the canadian oil sands are you concerned about a scarcity of demand for all this oil? >> no, i'm encouraged. if you actually look at the demand in the long run and compare the developing countries and developed countries, most people, most analysts would still see a significant global increase in demand. i think on this continent we may well have peaked in terms of demands when it cows to sufficiently supplying the needs. >> there's a great deal of interest in suncor, significant free cash flow, significant assets. we've seen active investor interested, in grattegrated oil
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companies may be interested. are you seeing interest? >> if we do back several years, we mergeed with petra canada, it's turned out to be fully successful. we're integrated on this continent. that means, for example, last year we were able to get on our volumes of products we sold a 96% brent related price. big discounts you hear about had very little impact on suncor. the merger, our ability to integrate towards market has been very powerful for us. >> on that vein my colleague gary comiskey was a long time shareholder of suncor. he has a question i have to get in here. he wants to know do you think that canada would green light a sale of suncor to exxonmobil. >> i think the very simple answer is no. if you look when we acquired petra canada, something called the petra canada act, which precludes a purchase of suncor without government approval. subsequent to that there has
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been competition legislation in canada. so it's very unlikely. if you look at the new guidelines the canadian government has, it's very unlikely a company the size and strategic importance of suncor to canada could be acquired. >> of course they could still wish for that to happen. probably won't but still wish for it. thank you for joining us here this week in houston. we'll have more live coming up throughout today and tomorrow from houston. of course can you catch it all on energy.cnbc.com. send it back to you. >> okay, sharon. thank you so much. given the fact the dow jones industrial is now up 150 points and at a new high, you would think the gold was punished a little more. it's holding up okay. prices about to close and jackie deangelis tracking action at the nymex. hi, jackie. >> we dipped briefly into the red but looks like we're rebounding into the close here. while the metals so strength, gold was actually the worst performer. if we do close higher we are going to break a four-day losing streak.
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that is important. we did see short covering and a little buying on the back of those figures out of china seeing a little bit of stimulus there. hopes of a continuation of easy monetary policy lifting up the precious metal today. overall a very cautious tone in the pits today before friday's jobs report. all eyes on that. meantime platinum and palladium that did better on a percentage basis today. seems like we see some buying skewed more into the cyclical metals here. a little bit afrotatiof of a r. some has gone into equities. the risk is on today. >> thank you very much. the dow soaring to the new all-time high. adding onto its advances up 150 points. where is the really big money going? well, we're going to find out because we have more than $700 billion worth of investment adviceing to to you in two minutes time. first some of america's most widely held stocks on this record breaking tuesday, pfizer,
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p&g, at&t all with gains. then, speaking of gains, check out shares of citi. about 15 minutes ago they started to spike on the possibility that the company would be open to a restructure. up 2% on citi. back now in a moment. u can takey all your important legal matters in just minutes. protect your family... and launch your dreams. at legalzoom.com we put the law on your side. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%...
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out on a limb here. >> this is the big hold on. i've been waiting for this. >> i think we're at a bottom. i really do. >> the late great mark haines. march 10th, 2009, where he nailed it. he correctly called the bottom to the day. pretty darn amazing. my colleague bob pisani is here on the floor with me. take me back. >> we walked past the plaque in his honor. there's one by the stairs leading to the platform every single day. we always nod at mark. one of his many contributions to our network over the many years. >> he did nail it. it has been an amazing market. >> that is when the dow was at
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6500. we're at 14,000. it took a lot of courage to say that at the time because march 9th and 10th no one knew where the bottom was. >> those were difficult days. i'm somewhat impressed with the market. i wish there was a little more volume. >> we're about an average day. we'll do 3.6, 3.7 billion towles shares on the nyse. 4 billion would be a strong day. i don't think -- declining spots not bad. you've been talking about transports at historic highs. >> my favorite index. >> market leaders. overall transportation index is the one that's up most. it's very broad. transport stocks, fedex, expediters like gatx. even the airlines all leading the way. also the building material names are huge today. 2, 3% moves. martin marietta, aggregates, stone and concrete, texas industry the same way there. home builders also are very
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strong today. the commodity stocks are all strong. commodity etf funds like you're looking at several of them here. oih, xme, metals and mining bottom, copper stocks, steel stocks. basically, sue, we're all back on the risk on mode here. the global growth mode. china, of course, confirmed its targets this year, 7.5% gdp growth. that's not spectacular. it was about in line with expectations. >> it's not bad certainly. >> 2%. >> better than we're doing. bob, thank you so much. i know we're going to see you throughout the day on cnbc. appreciate it very much. nasdaq is trading at a 12-year high. that's not the full story. seema mody has it. she has the details. >> that's right. trading at a multi-year high. let's put this all in perspective, the nasdaq roughly 37% away from breaking its all-time intraday and closing high, both of which were hit in march of 2000 right before the tech bubble burst. apple, though, while it's been
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under a lot of pressure recently is still the best performing tech stock on nasdaq since it crashed outperforming today's trade. google shares higher hitting another all-time high. when there is a rally in tech we almost always see participation from the semiconductor space. leave it there. sue, back over to you. >> thank you very much, seema. on a day the dow hits a new high, up 153 points, what's the bond market doing you ask. rick santelli with more on that. hi, ricky. >> the bond in the corner daydreaming a bit. we know there's a thumb on the scale. maybe that's the answer. you look at the intraday chart, we got up to 191. here we sit at 190 up two basis points while stocks are doing that thing they do oh, so well. the boone, up 4 basis points. bob is right, market do think it's a risk on day. look at the next chart. if i didn't tell you it was the
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dax index in germany it looks like a lot of global equities going up. everybody trading the same equity market. risk gone, you ask? look at the spanish and italian ten-year charts. both down. spain down six, italy down closer to 15 basis points. i guess they will buy anything when things are running to the upside. tyler, back to you. >> all right, rick. thank you very much. with stocks hitting an all-time high is the fed really driving the rally as many believe. here is what wall street legend had to say earlier today on "squawk box." >> it was he's to know when qe1 and 2 will end. this will end except i think qe2 are going to go on forever because all the lobsters are about to get into the pot. maybe we're in the seventh or eighth inning but they will get boiled. >> quite an image there. here to tell us where the big money, katherine, sees more than
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a trillion dollars in institutional clients for jpmorgan. welcome back. good to see you. >> thank you. nice to see you, tyler. >> what dunk about that? >> no doubt the fed easing is part of the strategy. part of the good news about today, though, a lot of fundamental strength behind equity markets right now. the u.s. economy has been growing for 14 straight quarters. we talk about markets touching perhaps all-time highs right now. the truth is corporate profits touched all-time highs a couple quarters ago and evaluations are still relatively reasonable, 20, 25% below 20-year averages. >> it's not just a money driven, monetary rise in this barometer, it's fundamental. >> there are both. >> both. >> you can't undersell bernanke. >> you cannot. >> but you can't deny there are good fundamentals. >> good fundamentals there. >> your clients, big institutional players, pension funds, endowments, among others,
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what are they asking you? what are they talking about? what are they interested in? >> they are interested in two things. all investors are interested in two things. one is yield. we're at historic low yields in the market. clipts are trying to figure out how can i get some more yield on my portfolio. if you want more yield, you have to take more risk. have you to decide how are you going to do that, ask for more duration or -- >> are they moving into higher yielding fixed income assets or also moving into higher yielding stocks. some of the blue chips have yields of 4%. >> again, a bit of both. one great asset that institutional investors have is they have capital. they also have patience. they can take liquidity and put it to work. what we've seen them doing most recently in credit markets is actually private credit. >> that's the difference between institutions and me. they have capital and patience and i have neither. let's talk a little about -- you said they want income, they want
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yield. they also want growth. where are you telling them they can find it. >> where institutions are really looking for growth these days is how do i access the global growth happening around the world and in particular emerging markets. it's official, emerging markets represent half the global economy. they represent 80% of global gdp growth over the last several years. institutions are saying particularly in the u.s., how can i access growth. i can do it through major multinational companies here supplying consumer products. the cars we heard about earlier, cell phones, et cetera, to consumers in emerging markets. also to supply other things that are needed in emerging markets. infrastructure, multifamily housing, roads, tunnels, bridges, all the things you need when you're creating a whole new middle class in countries around the world. >> catherine keating, thank you very much. good to see you again. >> you, too. >> the dow at a high. where do we go from here? don't miss our cnbc market special. that's tonight.
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mad money at 6:00. stay where you are. tune in at 7:00 eastern for our special record, "dow, an all-time high. purchase keeps going up 152 points with dow jones industrial breaking through to that all-time high. jim cramer's advice on your next move is coming up. first some of the home builders on this historic day, they are all posting pretty decent percentage moves len ar up 2.3. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪
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otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
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a record breaking dow does not mean managers are rushing into equities. 109 state pension plans had a shortfall of more than $830
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billion in 2012 says the consulting firm wilshire, the group out there. ballooning pension gaps worry states as credit ratings could be downgraded. douglas offerman with finch. >> in those cases where we see trouble with the funded ratio of a pension system, we have certainly taken credit rating actions or have let the market know we have credit concerns about those states. >> now, offerman adds illinois and pennsylvania are the most likely states to be downgraded. sue? >> ty, tonight it's the premier of the all new cnbc prime starting with "treasure detectives." it's a new reality series taking you deep inside the world of art, antiques, and collectibles. world renowned art detective curtis dowling is out to find
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out whether you're prized possessions are treasure or trash. they investigate with whether a roy lichtenstein print is an original or fake. >> i have the negative. >> marvelous. >> a negative transparency of a liechtenstein student to match up with ours. this should give us the answer we're looking for. >> i need to be 100% convinced this hasn't been produced by a master forger. what i need to do now is compare the wood grain fingerprint from our lichtenstein with the lichtenstein we know to be genuine. >> experts say the global art market is becoming a lot like real estate, chk is expensive and the inventory is expensive. bertha coombs is looking into that. she's live at christy's auction house. >> with more newly minted billionaires, there's more art collectors on the hunt for big trophies. they are harder and harder to find. this week we have the season
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kicking off in new york with christy's kicking off the first of the contemporary actions with its first open sale. they have emerging markets and lesser works by big names. coaxing those big collectors to sell their big trophies takes an awful lot of coaxing. >> once you sell them, to replace them is going to cost so much more than what you paid for them. >> a lot of times i'm hearing the question, kim, if i sell this, what am i going to buy with it, so they are holding onto their work. >> art advisers say people are reluctant to sell but they are still on the hunt for big trophies. according to the may moses art index, big trophies sold this winter had a compounded annual return of about 9.8%. even as we see the dow at a record high, this art is still returning more. sarah pritchard heading up the sales said the dow at record high couldn't have come at a better time. it's likely to stoke even more
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competition for those big trophy names. sue. >> i'm sure they will. they must be thrilled with this dow. thank you very much. be sure to watch "treasure detectives" on cnbc tonight at 9:00 eastern. i can't wait, ty. all right. marketwatcher on why this rally is more than just fed backed. that's coming up in 30 seconds. we're up 144 points on the dow jones industrial average.
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coming up on "street signs," we now know the dow is making records today. we're going to lay out the bull and bear case from here on and find out which case is most compelling. 1,000 price target for google. is that the kiss of death? jcp trading march 2009 lows. what needs to happen to catalyze it to the up side. all those things we're going to debate at the top of the show. see you on "street signs." >> mandy, thank you. the dow at a record high. jim cramer weighing in on "power lunch" about 30 minutes ago. >> six out of ten s&p sectors are still not back. so you start with a sector, a thend you work backwards, telco. it's not like we're sitting here. you're not just high fifrg
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everybody. not like a volleyball spike to the center. a lot of guys left out of the center. >> not about fed support of market, also about corporate earnings. he joins us live from denver, colorado. here on the floor of the nyse kenny, director with o'neill securities. i'm going to start with you. obviously the fed is part of this. you really think the corporate picture as it stands now is one of the reasons why we're seeing this move? >> if possible to separate out the federal reserve, there's no doubt they have been an important tail wind for equities in the economy. i think my only point would be it's not only about the federal reserve but something i noted basically the forward expectations for earnings up 129% since the bottom. today the s&p 500 up 128%. so there's been a close correlation, as there should be, between earnings and stock prices that belies or refutes the idea this is only the federal reserve. >> ken y, do you agree and what do you make of the move today? >> here is my confusion with
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that every time there's word or some sense the fed is pulling out, fed going to withdraw, the market immediately rolls over. i agree the earnings are doing better and all that stuff. what i'm saying, i think it's so dependent on the candy the fed is giving it. you can feel the nervousness, the minute anyone thinks the fed is going to start to withdraw, the market is not ready, economy not ready to handle the prices where they are currently. >> ken y, listen. there's no doubt there's probably -- there's no doubt there's going to be disruptions when the federal reserve does. in the past various programs coincided with disturbances exogenus. the pullbacks haven't been entirely the federal reserve. at some point this is going to change and the fed will have to move towards tightening. i would remind people when feds tighten interest rates, stocks
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do fine, economy does fine. you don't want to buy when they are easing. >> that's true. what we'll see, i assume, the fed will start tightening when the economy feels it's about to handle it. that would make sense. that could be another two years out. >> sure. it's probably going to be two if not three years out. >> there you go. while the music playing, you've got to dance. >> very quickly. kenny, do you think this market's advance continues? >> listen, you know me. i've been playing all along and keep getting hitting in the face with it. now in unchartered territory, nothing above us, the market has to find its way. i think it will churn. >> thank you both. appreciate it. writes the nasdaq in all this. will it ever hit a new high again? we'll talk about that two minutes away. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next.
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as you see nasdaq composite up today, 1.2%. as you look there from the number of 2000, it is down more than 20%. so the question for the taken bob pisani, john carney, will the nasdaq ever get back to where it was in the height of the tech bubble. let's stipulate, john carney, as the lawyers say, that peak for the nasdaq was in the middle of what i can only call a mania for tech stocks. >> right. so i think we've had a long time to build back up there. it does make me nervous to see us at this high of a level, especially since we haven't had a really significant pullback in many years. the last real big pullback was in 2009. historically we get a 20% correction. every three and a half years. we're basically waiting on that correction. bob pisani. >> you answered -- your point
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was completely correct, tyler. the problem with the nasdaq is still dealing with the overhang of the dot-com mania, absurd -- companies with no earnings at absurd prices. i'll give you an idea. from 2000 to 2009, nasdaq dropped -- 2000 to 2002, the w low, nasdaq dropped 80%, dow dropped 4%. there's the difference we're seeing so far. by the way, nasdaq has been a great performer since 2009 bottom, nasdaq up 150%. i think the dow is only up 120%. pretty good. the nasdaq has been outperforming so far this year. it's just the overhang, 12 years still dealing with the overhang. >> one positive the nasdaq has going for it, we're not in that completely insane valuation period in 2007, we're very far away from that. a lot of people say these make stocks if not cheap, not total
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rippoffs. >> a long day of cmgi and safeguard scientific, some of those hallowed, stored name. sock puppet. gentlemen, we have to leave it there. thank you very much. we'll be back with final seconds of the market when we return on what has so far been a most historic day. we'll be right back. [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion.
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